Valid Legal Consideration
A Valid Legal Consideration is a legal consideration that is recognized to be a Contractual Consideration under contractual law.
- Context:
- It can (typically) be a Valuable Consideration.
- It can (typically) be a Lawful Consideration (under contract law).
- Example(s):
- an Employment Wage.
- …
- Counter-Example(s):
- Invalid Legal Consideration, such as a past payment.
- a Gift.
- See: Valuable Asset, Legally Binding Contract, Contract Formation.
References
2015
- (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/consideration Retrieved:2015-4-9.
- … Conversely, if A signs a contract to buy a car from B for $0, B's consideration is still the car, but A is giving no consideration, and so there is no valid contract. However, if B still gives the title to the car to A, then B cannot take the car back, since, while it may not be a valid contract, it is a valid gift.
There are a number of common issues as to whether consideration exists in a contract.
- … Conversely, if A signs a contract to buy a car from B for $0, B's consideration is still the car, but A is giving no consideration, and so there is no valid contract. However, if B still gives the title to the car to A, then B cannot take the car back, since, while it may not be a valid contract, it is a valid gift.
2014
- (Business Dictionary, 2014) ⇒ http://www.businessdictionary.com/definition/contractual-relationship.html#ixzz3WkcSDh1N
- QUOTE: Legal relationship between contracting-parties evidenced by (1) an offer, (2) acceptance of the offer, and a (3) valid (legal and valuable) consideration. Existence of a contractual relationship, however, does not necessarily mean the contract is enforceable, that it is not void (see void contract), or not voidable (see voidable contract).
2013
- (Tresuri.gov.au, 2013) ⇒ http://www.treasury.gov.au/Policy-Topics/Business/Small-Business/Legal-Topics/Contracts/Agreement-making/Valid-consideration
- QUOTE: For a contract to be binding, there must be valid consideration. Consideration is the promise given by both parties as the "price" of entering into the agreement.
Without consideration a contract is not binding, unless it is a deed.
For consideration to be valid, it must have a value. In other words, each party must either give a benefit to the other party or undergo a detriment under the contract. For example, if A entered into an agreement with B in which the consideration was an amount of money which A had given B a year earlier, this would not be valid consideration. The consideration has no value because B has already received the money and is not getting any further benefit under the agreement. A on the other hand has already paid the money so is not undergoing any further detriment.
Other things which do not constitute valid consideration would include the following:
- A promise where the person making the promise has a discretion whether or not to fulfil the promise
- A promise which is too vague or uncertain
- A promise to perform an action which is already required by law
- A promise to perform the contract
- Most of the time it will be clear whether or not there is valid consideration. However, in more unusual situations it may be useful to seek legal advice in relation to this complicated area of contract law.
- QUOTE: For a contract to be binding, there must be valid consideration. Consideration is the promise given by both parties as the "price" of entering into the agreement.